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Thanh Thanh Cong Tay Ninh Joint Stock Company Interim consolidated financial statements 31 December 2016

Thanh Thanh Cong Tay Ninh Joint Stock Company

CONTENTS Pages General information 1 - 2 Report of management 3 Report on review of interim consolidated financial statements 4 - 5 Interim consolidated balance sheet 6 - 8 Interim consolidated income statement 9 Interim consolidated cash flow statement 10 - 11 Notes to the interim consolidated financial statements 12 - 60


GENERAL INFORMATION

1

THE COMPANY Thanh Thanh Cong Tay Ninh Joint Stock Company (“the Company”) is a shareholding company incorporated under the Law on Enterprise of Vietnam pursuant to the Investment License No. 1316/GP issued by the Ministry of Planning and Investment on 15 July 1995 and as amended. The Company was listed on the Ho Chi Minh City Stock Exchange with trading code as SBT in accordance with License No. 27/QD-SGDCKHCM issued by the Ho Chi Minh City Stock Exchange on 18 February 2008. The registered principal activities of the Company are producing sugar and electricity; planting sugar cane; producing and trading products using sugar or its by-products, waste products; producing and trading fertilizer, agricultural materials; constructing civil project; trading hotel and restaurant; constructing and trading industrial zone infrastructure; mechanical processing; consulting engineering, technology, and management in sugar’s production industry; producing and trading alcohol products; trading real estates, rent houses and apartments and investing activities. The Company’s head office is located at Tan Hung Commune, Tan Chau District, Tay Ninh Province, Vietnam and its representation office is located at No. 512, Ly Thuong Kiet Street, Ward 7, Tan Binh District, Ho Chi Minh City, Vietnam. BOARD OF DIRECTORS Members of the Board of Directors during the period at the date of this report are: Mr Pham Hong Duong Chairman Ms Nguyen Thi Hoa Vice Chairman appointed on 31 October 2016 Mr Le Van Dinh Vice Chairman Ms Dang Huynh Uc My Member Mr Henry Chung Member appointed on 31 October 2016 Mr Nguyen Quoc Viet Member resigned on 31 October 2016 Ms Pham Thi Thu Trang Member resigned on 31 October 2016 BOARD OF SUPERVISION Members of the Board of Supervision during the period and at the date of this report are: Ms Nguyen Thuy Van Head Mr Huynh Thanh Nhan Member Ms Pham Ngoc Thanh Mai Member appointed on 31 October 2016 Mr Nguyen Xuan Thanh Member resigned on 31 October 2016


GENERAL INFORMATION (continued)

2

MANAGEMENT Members of the Management during the period and at the date of this report are: Mr Nguyen Thanh Ngu General Director Ms Tran Que Trang Deputy General Director appointed on 15 November 2016 Mr Nguyen Van De Deputy General Director Mr Nguyen Viet Hung Deputy General Director Ms Duong Thi To Chau Deputy General Director Mr Le Duc Ton Factory Director Ms Nguyen Thi Thuy Tien Finance Director Mr Trang Thanh Truc Publicity Director Mr Huynh Van Phap Business Director Mr Thai Ba Hoa Material Director Ms Nguyen Thi Thu Trang Supporting Director appointed on 18 October 2016 LEGAL REPRESENTATIVE The legal representative of the Company during the period and at the date of this report is Mr Nguyen Thanh Ngu.

Ms Tran Que Trang is authorized by Mr Nguyen Thanh Ngu to sign the accompanying interim consolidated financial statements for the six-month period ended 31 December 2016 in accordance with the Decision No. 02A/2017/UQ – TGD dated 10 January 2017. AUDITORS The auditor of the Company is Ernst & Young Vietnam Limited.

Thanh Thanh Cong Tay Ninh Joint Stock Company REPORT OF MANAGEMENT

3

Management of Thanh Thanh Cong Tay Ninh Joint Stock Company (“the Company”) is pleased to present its report and the interim consolidated financial statements of the Company and its subsidiaries (“the Group”) for the six-month period ended 31 December 2016. MANAGEMENT’S RESPONSIBILITY IN RESPECT OF THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS Management is responsible for the interim consolidated financial statements of each financial period which give a true and fair view of the interim consolidated financial position of the Group and of the interim consolidated results of its operations and its interim consolidated cash flows for the period. In preparing those interim consolidated financial statements, management is required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the interim consolidated financial statements; and

prepare the interim consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue its business.

Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the interim consolidated financial position of the Group and to ensure that the accounting records comply with the applied accounting system. It is also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Management confirmed that it has complied with the above requirements in preparing the accompanying interim consolidated financial statements. STATEMENT BY MANAGEMENT Management hereby state that, in its opinion, the accompanying interim consolidated financial statements give a true and fair view of the interim consolidated financial position of the Group as at 31 December 2016, and of the interim consolidated results of its operations and its interim consolidated cash flows for the six-month period then ended in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of interim consolidated financial statements. For and on behalf of management: Tran Que Trang Deputy General Director 14 February 2017

Thanh Thanh Cong Tay Ninh Joint Stock Company B01a-DN/HN

INTERIM CONSOLIDATED BALANCE SHEET as at 31 December 2016

6

VND

Code ASSETS Notes 31 December 2016 30 June 2016

100 A. CURRENT ASSETS 4,497,567,979,801 4,216,029,016,581

110 I. Cash and cash equivalents 4 462,256,443,551 855,375,120,630 111 1. Cash 459,356,443,551 431,443,246,481 112 2. Cash equivalents 2,900,000,000 423,931,874,149

120 II. Short-term investments 127,106,549,058 46,424,094,687 121 1. Held-for-trading securities 5 109,614,850,882 54,116,600,867 122 2. Provision for held-for-trading

securities 5 (9,508,301,824) (7,692,506,180) 123 3. Held-to-maturity investments 6 27,000,000,000 -

130 III. Current accounts receivable 2,644,304,328,102 1,930,581,676,173 131 1. Short-term trade receivables 7 638,271,415,288 822,334,756,561 132 2. Short-term advances to

suppliers 8 1,535,888,489,270 938,582,888,061 135 3. Short-term loan receivables 32 379,300,000,000 133,500,000,000 136 4. Other short-term receivables 9 119,011,280,800 70,882,923,265 137 5. Provision for short-term

doubtful debts 8 (28,166,857,256) (34,718,891,714)

140 IV. Inventories 10 924,780,807,098 1,333,276,780,107 141 1. Inventories 926,005,027,639 1,334,096,271,683 149 2. Provision for obsolete

inventories (1,224,220,541) (819,491,576)

150 V. Other current assets 339,119,851,992 50,371,344,984 151 1. Short-term prepaid expenses 11 173,261,933,227 40,887,927,016 152 2. Value added tax deductible 17,756,050,243 9,102,232,099 153 3. Tax and other receivables from

the State 148,101,868,522 381,185,869


INTERIM CONSOLIDATED BALANCE SHEET (continued) as at 31 December 2016

7

VND

Code ASSETS Notes 31 December 2016 30 June 2016

200 B. NON-CURRENT ASSETS 2,806,109,833,818 2,620,667,782,014

210 I. Long-term receivables 247,934,429,663 194,048,412,209 212 1. Long-term advances to

suppliers 8 105,643,343,092 58,769,761,197 216 2. Other long-term receivables 9 142,291,086,571 135,278,651,012

220 II. Fixed assets 1,608,956,197,343 1,555,356,440,558 221 1. Tangible fixed assets 12 1,359,909,103,085 1,305,729,123,707 222 Cost 3,195,274,712,710 3,051,892,253,773 223 Accumulated depreciation (1,835,365,609,625) (1,746,163,130,066) 224 2. Finance leases 13 65,130,930,398 67,610,055,686 225 Cost 73,767,448,385 73,767,448,385 226 Accumulated depreciation (8,636,517,987) (6,157,392,699) 227 3. Intangible assets 14 183,916,163,860 182,017,261,165 228 Cost 201,874,372,697 197,891,271,547 229 Accumulated amortisation (17,958,208,837) (15,874,010,382)

240 III. Long-term asset in progress 43,981,890,095 124,818,704,027 242 1. Construction in progress 15 43,981,890,095 124,818,704,027

250 II. IV. Long-term investments 16 841,331,337,293 686,067,887,183 252 1. Investments in associates 16.1 841,331,337,293 398,984,110,671 253 2. Investments in other entities 16.2 770,062,384 287,922,171,983 254 3. Provision for long-term

investments (770,062,384) (838,395,471)

260 III. V. Other long-term assets 63,905,979,424 60,376,338,037 261 1. Long-term prepaid expenses 11 46,933,327,455 41,619,031,610 262 2. Deferred tax asset 31.3 34,627,948 851,395,319 269 3. Goodwill 17 16,938,024,021 17,905,911,108

270 TOTAL ASSETS 7,303,677,813,619 6,836,696,798,595


INTERIM CONSOLIDATED BALANCE SHEET (continued) as at 31 December 2016

8

VND

Code RESOURCES Notes 31 December 2016 30 June 2016

300 C. LIABILITIES 4,356,086,457,939 4,134,301,056,939

310 I. Current liabilities 3,044,411,342,432 2,774,320,638,118 311 1. Short-term trade payables 18 193,597,238,075 46,117,978,053 312 2. Short-term advances from

customers 19 260,666,737,371 85,044,977,543 313 3. Statutory obligations 20 1,169,679,846 12,205,553,830 314 4. Payables to employees 1,603,303,706 10,133,880,337 315 5. Short-term accrued

expenses 21 87,698,987,360 58,769,362,740 319 6. Short-term other payables 22 11,732,898,251 24,174,187,980 320 7. Short-term loans and

finance lease obligations 23 2,449,970,904,974 2,520,380,695,895 322 8. Bonus and welfare fund 37,971,592,849 17,494,001,740

330 II. Non-current liabilities 1,311,675,115,507 1,359,980,418,821 337 1. Other long-term liability 185,500,000 185,500,000 338 2. Long-term loans and finance

lease obligations 23 1,311,489,615,507 1,359,794,918,821

400 D. OWNERS’ EQUITY 2,947,591,355,680 2,702,395,741,656

410 I. Capital 2,947,591,355,680 2,702,395,741,656 411 1. Share capital 24.1 2,531,882,680,000 1,947,610,330,000 411a - Shares with voting rights 2,531,882,680,000 1,947,610,330,000 412 2. Share premium 24.1 75,894,194,065 155,174,403,823 415 3. Treasury shares 24.1 - (40,306,862,293) 417 4. Foreign exchange

differences reverse 24.1 3,408,940,821 (2,165,210,735) 418 5. Investment and

development fund 24.1 39,217,460,174 243,709,260,201 421 6. Undistributed earnings 24.1 285,497,378,930 386,137,417,421 421a - Undistributed earnings up

to the end of prior period 111,025,631,641 93,923,017,688 421b - Undistributed earnings

of current period 174,471,747,289 292,214,399,733 429 7. Non-controlling interests 25 11,690,701,690 12,236,403,239

440 TOTAL LIABILITIES AND OWNERS’ EQUITY 7,303,677,813,619 6,836,696,798,595

Nguyen Ngoc Han Le Phat Tin Tran Que Trang Preparer Chief Accountant Deputy General Director 14 February 2017


INTERIM CONSOLIDATED INCOME STATEMENT for the six-month period ended 31 December 2016

9

VND

Code ITEMS Notes

For the six-month period ended

31 December 2016


31 December 2015

01 1. Revenues from sale of goods and rendering of services 26.1 2,097,398,777,940 1,775,800,122,332

02 2. Deductions 26.1 (773,971,495) (9,334,395,691)

10 3. Net revenues from sale of goods and rendering of services 26.1 2,096,624,806,445 1,766,465,726,641

11 4. Cost of goods sold and services rendered 27 (1,807,399,005,862) (1,478,894,582,503)

20 5. Gross profit from sale of goods and rendering of services 289,225,800,583 287,571,144,138

21 6. Finance income 26.2 97,843,812,692 92,192,676,945

22 7. Finance expenses 28 (138,832,827,075) (92,460,919,296) 23 In which: Interest expense (118,770,981,286) (47,664,196,204)

24 8. Shares of profit of associates 39,851,946,622 7,966,396,311

25 9. Selling expenses 29 (29,661,807,223) (45,188,500,756)

26 10. General and administrative expenses 29 (67,670,882,840) (70,654,501,728)

30 11. Operating profit 190,756,042,759 179,426,295,614

31 12. Other income 6,308,613,213 5,321,288,505

32 13. Other expenses (3,647,828,564) (2,351,088,873)

40 14. Other profit 2,660,784,649 2,970,199,632

50 15. Accounting profit before tax 193,416,827,408 182,396,495,246

51 16. Current corporate income tax expense 31.2 (18,674,014,297) (12,856,624,287)

52 17. Deferred tax expense 31.3 (816,767,371) -

60 18. Net profit after tax 173,926,045,740 169,539,870,959

61 19. Net profit after tax attributable to shareholders of the parent 174,471,747,289 169,208,623,602

62 20. Net (loss) profit after tax attributable to non-controlling interests

(545,701,549) 331,247,357

70 21. Basic earnings per share 24.4 608 648

71 22. Diluted earnings per share 24.4 608 648



INTERIM CONSOLIDATED CASH FLOW STATEMENT for the six-month period ended 31 December 2016

10

VND

Code ITEMS Notes


31 December 2016


31 December 2015

I. CASH FLOWS FROM

OPERATING ACTIVITIES 01 Profit before tax 193,416,827,408 182,396,495,246

Adjustments for: 02 Depreciation and amortisation

of fixed assets (including amortization of goodwill)

12, 13, 14, 17 97,892,673,217 70,002,886,318

03 (Reversal of provision) Provision (4,399,842,936) 31,002,208,050

04 Foreign exchange (gains) losses arisen from revaluation of monetary accounts denominated in foreign currency (865,580,574) 28,884,022,439

05 Profit from investing activities (132,668,244,703) (43,098,776,668) 06 Interest expense 28 118,770,981,286 47,664,196,204

08 Operating profit before changes

in working capital 272,146,813,698 316,851,031,589 09 Increase in receivables (741,682,198,290) (1,201,331,291,556) 10 Decrease in inventories 408,091,244,044 270,173,972,415 11 Increase in payables 357,933,591,959 460,871,130,920 12 Increase in prepaid expenses (136,368,302,056) (76,053,750,248) 13 (Decrease) increase in held-for-

trading securities 11,506,717,668 (60,610,602,072) 14 Interest paid (119,972,922,562) (32,188,329,327) 15 Corporate income tax paid 31.2 (25,762,034,265) (4,788,013,823) 17 Other cash outflows for

operating activities (20,924,414,698) (9,013,321,140)

20 Net cash flows from (used in) operating activities 4,968,495,498 (336,089,173,242)

II. CASH FLOWS FROM

INVESTING ACTIVITIES 21 Purchase and construction of

fixed assets (76,681,726,623) (266,583,408,492) 22 Proceeds from disposals of

fixed assets 5,961,160,281 943,821,694 23 Loans to other entities (928,800,000,000) (45,000,000,000) 24 Collections from borrowers 656,000,000,000 179,000,000,000 25 Payments for investments in

other entities (302,495,280,000) - 26 Proceeds from sale of

investments in other entities 228,380,722,544 - 27 Interest and dividends received 33,388,947,326 29,968,058,319

30 Net cash flows used in investing

activities (384,246,176,472) (101,671,528,479)


INTERIM CONSOLIDATED CASH FLOW STATEMENT (continued) for the six-month period ended 31 December 2016

11

VND

Code ITEMS Notes


31 December 2016


31 December 2015

III. CASH FLOWS FROM

FINANCING ACTIVITIES 31 Reissuance of treasury shares 107,097,422,535 24,286,015,963 33 Drawdown of borrowings 2,728,971,357,928 1,995,140,342,638 34 Repayment of borrowings (2,845,168,524,083) (1,147,395,745,456) 35 Finance lease principal paid (4,581,414,540) - 36 Dividends paid 24.2 (60,150,650) (2,756,991,570)

40 Net cash flows (used in) from financing activities (13,741,308,810) 869,273,621,575

50 Net (decrease) increase in cash

and cash equivalents (393,018,989,784) 431,512,919,854

60 Cash and cash equivalents at beginning of period 855,375,120,630 138,062,494,402

61 Impact of exchange rate

fluctuation (99,687,295) (23,010,710)

70 Cash and cash equivalents at end of period 4 462,256,443,551 569,552,403,546


Thanh Thanh Cong Tay Ninh Joint Stock Company B09a-DN/HN NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as at and for the six-month period ended 31 December 2016

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1. CORPORATE INFORMATION

Thanh Thanh Cong Tay Ninh Joint Stock Company (“the Company”) is a shareholding company incorporated under the Law on Enterprise of Vietnam pursuant to the Investment License No. 1316/GP issued by the Ministry of Planning and Investment on 15 July 1995 and as amended. The Company was listed on the Ho Chi Minh City Stock Exchange with trading code as SBT in accordance with License No. 27/QD-SGDCKHCM issued by the Ho Chi Minh City Stock Exchange on 18 February 2008. The registered principal activities of the Company and its subsidiaries (“the Group”) are producing sugar and electricity; planting sugar cane; producing and trading products using sugar or its by-products, waste products; producing and trading fertilizer, agricultural materials; constructing civil project; trading hotel and restaurant; constructing and trading industrial zone infrastructure; mechanical processing; consulting engineering, technology, and management in sugar’s production industry; producing and trading alcohol products; trading real estates, rent houses and apartments and investing activities. The Company’s head office is located at Tan Hung Commune, Tan Chau District, Tay Ninh Province, Vietnam and its representation office is located at No. 512, Ly Thuong Kiet Street, Ward 7, Tan Binh District, Ho Chi Minh City, Vietnam. The number of the Group’s employees as at 31 December 2016 was 1,367 (30 June 2016: 1,056).

Thanh Thanh Cong Tay Ninh Joint Stock Company B09a-DN/HN NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the six-month period ended 31 December 2016

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1. CORPORATE INFORMATION (continued)

Corporate structure

As at 31 December 2016, the Group’s corporate structure includes 5 subsidiaries, as follows: Name of subsidiaries Head office Business activities Status of

operation % holding

31 December 2016

30 June 2016

(1) Thanh Thanh Cong

Alcohol Trading Production Joint Stock Company

Tan Chau District, Tay Ninh Province

Manufacturing and trading alcohol and related by-products; manufacturing and trading electricity; manufacturing fertilizer and planting sugarcane

Operating 90 90

(2) Thanh Thanh Cong Gia Lai Company Limited

Ayunpa Town, Gia Lai Province

Manufacturing sugar and other by-products from sugar-cane for sales; manufacturing electricity for

sales; manufacturing and trading in fertilizer

Operating 100 100

(3) TSU Investment Private Limited Company

Singapore Trading and apart of manufacturing and packaging raw and refined sugar to sell in

Singapore and export to region

Operating 100 100

(4) Thanh Thanh Cong Sugarcane Research and Application Joint Stock Company

Tan Chau District, Tay Ninh Province

Researching and developing sugar cane sprouts; analysing cultivation and planting protection

products; producing and developing mechanic machineries for sugar canes production

Operating 62 62

(5) Gia Lai Thermoelectricity One Member Company Limited

Ayunpa Town, Gia Lai

Province

Manufacturing, transmitting and distributing electricity

Operating 100 100


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2. BASIS OF PREPARATION

2.1 Accounting standards and system

The interim consolidated financial statements of the Group expressed in Vietnam dong (“VND”), are prepared in accordance with Vietnamese Enterprise Accounting System and Vietnamese Accounting Standard No. 27 - Interim Financial Reporting and other Vietnamese Accounting Standards issued by the Ministry of Finance as per:

Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 1);

Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 2);

Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 3);

Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 4); and

Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 5).

Accordingly, the accompanying interim consolidated financial statements, including their utilisation are not designed for those who are not informed about Vietnam’s accounting principles, procedures and practices and furthermore are not intended to present the financial position and the results of its operations and cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam.

2.2 Applied accounting documentation system

The Group’s applied accounting documentation system is the General Journal system.

2.3 Fiscal year

The Company’s fiscal year applicable for the preparation of its consolidated financial statements starts on 1 July and ends on 30 June.

2.4 Accounting currency

The interim consolidated financial statements are prepared in VND which is also the Group’s accounting currency.

2.5 Basis of consolidation

The interim consolidated financial statements comprise the interim financial statements of the Company and its subsidiaries for the six-month period ended 31 December 2016.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continued to be consolidated until the date that such control ceases.

The interim financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies.

All intra-company balances, income and expenses and unrealised gains or losses result from intra-company transactions are eliminated in full.


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2. BASIS OF PREPARATION (continued) 2.5 Basis of consolidation (continued)

Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the interim consolidated income statement and within equity in the interim consolidated balance sheet, separately from parent shareholders’ equity.

Impact of change in the ownership interest of a subsidiary, without a loss of control, is recorded in undistributed earnings.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash at banks and short-term, highly liquid investments with an original maturity of less than three months that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value.

3.2 Inventories

Inventories are stated at the lower of cost incurred in bringing each product to its present location and condition, and net realisable value.

Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs to complete and the estimated costs necessary to make the sale.

The perpetual method is used to record inventories, which are valued as follows:

Raw materials, merchandise - cost of purchase on a weighted average basis.

Finished goods and work-in-process

- cost of direct materials and labour plus attributable manufacturing overheads based on the normal operating capacity on a weighted average basis.

Provision for obsolete inventories

An inventory provision is created for the estimated loss arising due to the impairment of value (through diminution, damage, obsolescence, etc.) of raw materials, finished goods, and other inventories owned by the Group, based on appropriate evidence of impairment available at the interim balance sheet date.

Increases or decreases to the provision balance are recorded into the cost of goods sold account in the interim consolidated income statement.


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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.3 Receivables

Receivables are presented in the interim consolidated financial statements at the carrying amounts due from customers and other debtors, after provision for doubtful debts.

The provision for doubtful debts represents amounts of outstanding receivables at the interim balance sheet date which are doubtful of being recovered. Increases or decreases to the provision balance are recorded as general and administrative expense in the interim consolidated income statement.

3.4 Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation.

The cost of a tangible fixed asset comprises its purchase price and any directly attributable costs of bringing the fixed asset to working condition for its intended use.

Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and expenditures for maintenance and repairs are charged to the interim consolidated income statement as incurred.

When tangible fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference between the net disposal proceeds and the carrying amount) is included in the interim consolidated income statement.

3.5 Leased assets

The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset and the arrangement conveys a right to use the asset.

A lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee. All other leases are classified as operating leases.

Where the Group is the lessee

Assets held under finance leases are capitalised in the interim consolidated balance sheet at the inception of the lease at the fair value of the leased assets or, if lower, at the net present value of the minimum lease payments. The principal amount included in future lease payments under finance leases are recorded as a liability. The interest amounts included in lease payments are charged to the interim consolidated income statement over the lease term to achieve a constant rate on interest on the remaining balance of the finance lease liability.

Capitalised financial leased assets are depreciated using straight-line basis over the shorter of the estimated useful lives of the asset and the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

Rentals under operating leases are charged to the interim consolidated income statement on a straight-line basis over the lease term.


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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.6 Intangible fixed assets

Intangible fixed assets are stated at cost less accumulated amortisation.

The cost of an intangible fixed asset comprises its purchase price and any directly attributable costs of preparing the intangible fixed asset for its intended use.

Expenditures for additions, improvements are added to the carrying amount of the assets and other expenditures are charged to the interim consolidated income statement as incurred.

When intangible fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference between the net disposal proceeds and the carrying amount) is included in the interim consolidated income statement.

Land use rights

Land use right is recorded as intangible fixed asset on the interim consolidated balance sheet when the Company obtained the land use right certificate. The costs of a land use right comprises all directly attributable costs of bringing the land lot to the condition available for its intended use.

3.7 Depreciation and amortisation

Depreciation of tangible fixed assets and finance lease assets and amortisation of intangible assets are calculated on a straight-line basis over the estimated useful life of each asset as follows:

Land use rights 50 years Buildings and structures 5 - 30 years Machineries and equipment 2 - 20 years Office equipment 3 - 5 years Computer software 2 - 6 years Means of transportation 5 - 6 years Others 4 - 15 years

3.8 Investments

Investment in associates

The Group’s investment in its associates is accounted for using the equity method of accounting. An associate is an entity in which the Group has significant influence that is neither subsidiaries nor joint ventures. The Group generally deems they have significant influence if they have over 20% of the voting rights.

Under the equity method, the investment is carried in the interim consolidated balance sheet at cost plus post acquisition changes in the Group’s share of net assets of the associates. Goodwill arising on acquisition of the associate is included in the carrying amount of the investment. Goodwill is not amortised and subject to annual review for impairment. The interim consolidated income statement reflects the share of the post-acquisition results of operation of the associates.

The share of post-acquisition profit (loss) of the associates is presented on face of the interim consolidated income statement and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends received or receivable from associates reduce the carrying amount of the investment.

The financial statements of the associates are prepared for the same reporting period and use the same accounting policies as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.


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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.8 Investments (continued)

Held-for-trading securities and investments in other entities

Held-for-trading securities and investments in other entities are stated at their acquisition costs.

Provision for investments

Provision is made for any diminution in value of the held-for-trading securities and investments in capital of other entities at the interim balance sheet date in accordance with the guidance under the Circular No. 228/2009/TT-BTC dated 7 December 2009 and Circular No. 89/2013/TT-BTC dated 28 June 2013 issued by the Ministry of Finance. Increases or decreases to the provision balance are recorded as finance expense in the interim consolidated income statement.

3.9 Prepaid expenses

Prepaid expenses are reported as short-term or long-term prepaid expenses on the interim consolidated balance sheet and amortised over the period for which the amounts are paid or the period in which economic benefits are generated in relation to these expenses.

The prepaid land rental represents the unamortised balance of advance payment. Such prepaid rental is recognised as a long-term prepaid expense for allocation to the income statement over the remaining lease period according to Circular 45.

Pre-season overhaul costs are calculated and amortised to production costs based on the actual volume of sugar produced during the period.

3.10 Borrowing costs

Borrowing costs consist of interest and other costs that the Group incurs in connection with the borrowing of funds and are recorded as expense during the period in which they are incurred.

Borrowing costs are recorded as expense during the period in which they are incurred, except to the extent that they are capitalized as explained in the following paragraph.

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily take a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset.

3.11 Payables and accruals

Payables and accruals are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Group.

3.12 Foreign currency transactions

Transactions in currencies other than the Group’s reporting currency of VND are recorded at the actual transaction exchange rates at transaction dates which are determined as follows:

- Transaction resulting in receivables are recorded at the buying exchange rates of the commercial banks designated for collection; and

- Transactions resulting in liabilities are recorded at the selling exchange rates of the transaction of commercial banks designated for payment.


19

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.12 Foreign currency transactions (continued)

At the end of the period, monetary balances denominated in foreign currencies are translated at the actual transaction exchange rate at the interim balance sheet dates which are determined as follow:

- Monetary assets are translated at buying exchange rate of the commercial bank where the Group conduct transactions regularly; and

- Monetary liabilities are translated at selling exchange rate of the commercial bank where the Group conduct transactions regularly.

All foreign exchange differences incurred during the period and arising from the revaluation of monetary accounts denominated in foreign currency at period-end are taken to the interim consolidated income statement.

For the purpose of presenting the interim consolidated financial statements, the assets and liabilities of the Group’s foreign subsidiary are translated into VND using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in the “foreign exchange difference reserve” account in the equity section of the interim consolidated balance sheet (attributed to non-controlling interests as appropriate).

3.13 Treasury shares

Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss upon purchase, sale, issue or cancellation of the Group’s own equity instruments.

3.14 Appropriation of net profits

Net profit after tax (excluding negative goodwill arising from a bargain purchase) is available for appropriation to shareholders after approval in the Annual General Meeting, and after making appropriation to reserve funds in accordance with the Company’s Charter and Vietnam’s regulatory requirements.

The Group maintains the following reserve funds which are appropriated from the Group’s net profit as proposed by the Board of Directors and subject to approval by shareholders at the annual general meeting.

Investment and development fund

This fund is set aside for use in the Group’s expansion of its operation or of in-depth investment.

Bonus and welfare fund

This fund is set aside for the purpose of pecuniary rewarding and encouraging, common benefits and improvement of the employees’ benefits, and presented as a liability on the interim consolidated balance sheet.


20

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.15 Earnings per share

Basic earnings per share amounts are calculated by dividing net profit after tax for the period attributable to ordinary shareholders of the Company (after adjusting for the bonus and welfare fund) by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share amounts are calculated by dividing the net profit after tax attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

3.16 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding trade discount, rebate and sales return. The following specific recognition criteria must also be met before revenue is recognised:

Sale of goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually upon the delivery of the goods.

Sale of electricity

Revenue is recognized based on the actual electricity sold and transferred to the grid at the pre-agreed tariff.

Rendering of services

Revenues are recognised upon completion of the services provided.

Interest

Revenue is recognised as the interest accrues (taking into account the effective yield on the asset) unless collectability is in doubt.

Dividends

Income is recognised when the Group’s entitlement as an investor to receive the dividend is established.


21

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.17 Taxation

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted as at the interim balance sheet date.

Current income tax is charged or credited to the interim consolidated income statement, except when it relates to items recognised directly to equity, in which case the current income tax is also dealt with in equity.

Current income tax assets and liabilities are offset when there is a legally enforceable right for the Group to offset current tax assets against current tax liabilities and when the Group intends to settle its current tax assets and liabilities on a net basis.

Deferred tax

Deferred tax is provided using the liability method on temporary differences at the interim balance sheet date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each interim balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Previously unrecognised deferred tax assets are re-assessed at each interim balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled based on tax rates and tax laws that have been enacted at the interim balance sheet date.

Deferred tax is charged or credited to the interim consolidated income statement, except when it relates to items recognised directly to equity, in which case the deferred tax is also dealt with in the equity account.

Deferred tax assets and liabilities are offset when there is a legally enforceable right for the Group to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on either the same taxable entity or when the Group intends either settle current tax liabilities and assets on a net basis or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.


22

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.18 Segment information

A segment is a component determined separately by the Group which is engaged in providing products or related services (business segment), or providing products or services in a particular economic environment (geographical segment), that is subject to risks and returns that are different from those of other segments. As the Group’s revenue and profit are derived mainly from production and trading sugar and sugar related by-products in Vietnam while other sources of revenue are not material as a whole, the management accordingly believed that the Group operates in a sole business segment of production and trading sugar and sugar related by-products. Geographical segment of the Group is in Vietnam only.

4. CASH AND CASH EQUIVALENTS

VND

31 December 2016 30 June 2016

Cash on hand 2,290,065,296 1,006,576,157 Cash in banks 457,066,378,255 430,436,670,324

Cash equivalents (*) 2,900,000,000 423,931,874,149

TOTAL 462,256,443,551 855,375,120,630

(*) Cash equivalents represent two-month term deposit at a commercial bank which earn

interest at 4.8% per annum.


23

5. HELD-FOR-TRADING SECURITIES


Share Value Share Value

VND VND

Listed shares

- Phuoc Hoa Rubber Joint Stock Company (“PHR”) 3,715,660 67,004,967,683 - -

Other investments 42,609,883,199 54,116,600,867

TOTAL 109,614,850,882 54,116,600,867

Provision for held-for-trading securities (9,508,301,824) (7,692,506,180)

NET 100,106,549,058 46,424,094,687

6. HELD-TO-MATURITY INVESTMENTS

Held-to-maturity investments represent term deposits at commercial banks, which earn interest at rates ranging from 5.0% to 5.3% per annum.

Held-to-maturity investment amounting to VND 27,000,000,000 was pledged as collateral for short-term loan obtained from a commercial bank (Note 23).

7. SHORT-TERM TRADE RECEIVABLES

VND


Trade receivables from other parties 187,374,473,892 322,705,840,976

In which: - Suntory PepsiCo Vietnam Beverage

Co., Ltd 28,524,651,750 147,570,149,989 - Others 158,849,822,142 175,135,690,987

Trade receivables from related parties (Note 32) 450,896,941,396 499,628,915,585

TOTAL 638,271,415,288 822,334,756,561

Short-term trade receivables amounting to VND 583,245,750,000 were pledged as collateral for the short-term loans obtained from commercial banks (Note 23).


24

8. ADVANCES TO SUPPLIERS

VND


Short-term 1,535,888,489,270 938,582,888,061

Advances to other parties 492,939,525,813 490,682,371,078

In which: - Farmers (*) 366,137,530,667 353,028,961,685 - Others 126,801,995,146 137,653,409,393 Advances to related parties (Note 32) 1,042,948,963,457 447,900,516,983

Long-term 105,643,343,092 58,769,761,197

Advances to farmers (*) 105,643,343,092 58,769,761,197

TOTAL 1,641,531,832,362 997,352,649,258

Provision for short-term advances to suppliers (28,166,857,256) (34,718,891,714)

NET 1,613,364,975,106 962,633,757,544

(*) Advances to sugar cane farmers are partially secured by the farmers’ land use rights

and earned interest at rate ranging from 9.6% to 10.8% per annum.

Details of movements of provision for short-term advances to suppliers:

VND


31 December 2016


31 December 2015

Beginning balance 34,718,891,714 23,287,275,550 Increase due to business combination - 281,031,440 Provision made during the period - 23,237,254,826

Reversal during the period (6,552,034,458) (9,698,775,678)

Ending balance 28,166,857,256 37,106,786,138


25

9. OTHER RECEIVABLES

VND


Short-term 119,011,280,800 70,882,923,265

Interest receivables 59,304,269,950 46,527,536,973 Receivables from disposal of investment 18,340,631,000 - Payment on behalf 12,957,386,990 - Advances to employees 8,912,674,640 20,096,157,272 Lending of materials 7,519,315,019 3,561,472 Deposits 4,764,080,000 - Others 7,212,923,201 4,255,667,548

Long-term 142,291,086,571 135,278,651,012

Deposits for land rental 129,583,661,571 122,571,226,012 Receivables from Svayrieng project in Cambodia (*) 12,707,425,000 12,707,425,000

TOTAL 261,302,367,371 206,161,574,277

In which: Related parties (Note 32) 47,443,612,439 24,505,351,680 Other parties 213,858,754,932 181,656,222,597

(*) Other long-term receivables included an amount of VND 12,707,425,000 (30 June 2016:

VND 12,707,425,000) contributed for Business Co-operation Contract between the Group and Svayrieng Sugar and Cane Company Litmited to develop a project to plant sugar canes in Cambodia with the duration of 10 (ten) years. The Group owns 85% interest sharing from this project. The Group is committed to purchase all sugar canes harvested from this project.

10. INVENTORIES VND


Finished goods 477,778,064,835 1,062,686,165,328 Raw materials 347,138,339,429 98,843,087,846 Merchandise goods 4,293,383,716 86,807,366,465 Real estate properties - 49,231,049,895 Work-in-process 92,039,788,383 30,573,298,646 Tools and supplies 4,755,451,276 1,866,121,009

Goods on consignment - 4,089,182,494

TOTAL 926,005,027,639 1,334,096,271,683

Provision for obsolete inventories (1,224,220,541) (819,491,576)

NET 924,780,807,098 1,333,276,780,107

Inventories amounting to VND 819,495,750,000 were pledged as collateral for the short-term loans obtained from commercial banks (Note 23).


26

11. PREPAID EXPENSES

VND


Short-term 173,261,933,227 40,887,927,016 Pre-season overhaul costs 159,232,638,099 33,790,645,815 Others 14,029,295,128 7,097,281,201 Long-term 46,933,327,455 41,619,031,610 Prepaid land rental 30,383,059,133 34,708,429,061 Tools and supplies 2,459,475,048 2,996,060,400

Others 14,090,793,274 3,914,542,149

TOTAL 220,195,260,682 82,506,958,626


27

12. TANGIBLE FIXED ASSETS

VND

Buildings and

structures Machinery and

equipment Means of

transportation Office

equipment

Other assets Total

Cost:

As at 30 June 2016 464,399,695,683 2,475,017,846,917 41,453,733,553 10,850,923,606 60,170,054,014 3,051,892,253,773 New purchase 2,209,746,606 3,744,675,057 7,982,913,026 1,681,857,392 3,009,425,277 18,628,617,358 Transfer from construction in progress 111,359,638,496 23,547,183,551 - - - 134,906,822,047

Disposal (983,983,600) (9,168,996,868) - - - (10,152,980,468)

As at 31 December 2016 576,985,097,185 2,493,140,708,657 49,436,646,579 12,532,780,998 63,179,479,291 3,195,274,712,710

In which: Fully depreciated 23,616,144,870 253,983,270,705 7,062,770,011 5,429,695,827 58,405,330,530 348,497,211,943

Accumulated depreciation:

As at 30 June 2016 231,697,888,684 1,430,336,592,376 18,418,953,268 7,052,271,671 58,657,424,067 1,746,163,130,066 Depreciation for the period 11,407,598,055 77,914,720,014 2,300,813,550 691,209,709 47,121,059 92,361,462,387

Disposal (843,493,555) (2,315,489,273) - - - (3,158,982,828)

As at 31 December 2016 242,261,993,184 1,505,935,823,117 20,719,766,818 7,743,481,380 58,704,545,126 1,835,365,609,625

Net carrying amount:

As at 30 June 2016 232,701,806,999 1,044,681,254,541 23,034,780,285 3,798,651,935 1,512,629,947 1,305,729,123,707

As at 31 December 2016 334,723,104,001 987,204,885,540 28,716,879,761 4,789,299,618 4,474,934,165 1,359,909,103,085

In which: Pledged as loan security (Note 23) 146,126,915,924 473,152,961,059 - 2,749,991,868 - 622,029,868,851


28

13. FINANCE LEASES

VND

Machineries

and equipment

Cost:

As at 30 June 2016 and 31 December 2016 73,767,448,385

Accumulated depreciation:

As at 30 June 2016 6,157,392,699

Amortisation for the period 2,479,125,288

As at 31 December 2016 8,636,517,987


As at 30 June 2016 67,610,055,686

As at 31 December 2016 65,130,930,398

14. INTANGIBLE FIXED ASSETS

VND

Land use rights Computer software Total

Cost:

As at 30 June 2016 186,262,211,459 11,629,060,088 197,891,271,547

New purchase - 3,983,101,150 3,983,101,150

As at 31 December 2016 186,262,211,459 15,612,161,238 201,874,372,697

In which: Fully amortised - 589,186,516 589,186,516

Accumulated amortisation:

As at 30 June 2016 10,627,513,423 5,246,496,959 15,874,010,382

Amortisation for the period 1,096,463,849 987,734,606 2,084,198,455

As at 31 December 2016 11,723,977,272 6,234,231,565 17,958,208,837


As at 30 June 2016 175,634,698,036 6,382,563,129 182,017,261,165

As at 31 December 2016 174,538,234,187 9,377,929,673 183,916,163,860

In which: Pledged as loan security (Note 23) 162,905,635,150 - 162,905,635,150


29

15. CONSTRUCTION IN PROGRESS

VND


Espace Bourbon Tay Ninh project 2,757,906,005 93,957,120,070 Installing machinery and equipment 16,238,527,351 17,698,066,904 Warehouse project 11,013,125,277 -

Others 13,972,331,462 13,163,517,053

TOTAL 43,981,890,095 124,818,704,027

Constructions in progress amounting to VND 2,757,906,005 were pledged as collateral for the long-term loans obtained from commercial banks (Note 23).

During the period, the Group capitalized borrowing costs amounting to VND 2,188,241,164 (for the six-month period ended 31 December 2015: VND 2,987,224,399) to Espace Bourbon Tay Ninh project.

16. LONG-TERM INVESTMENTS

VND


Investments in associates (Note 16.1) 841,331,337,293 398,984,110,671

Investments in other entities (Note 16.2) 770,062,384 287,922,171,983

TOTAL 842,101,399,677 686,906,282,654

Provision for long-term investments (770,062,384) (838,395,471)

NET 841,331,337,293 686,067,887,183

16.1 Investments in associates

Details of these investments in associates were as follows:


Carrying amount % of

interest Carrying amount % of

interest

(VND) (VND)

Ben Tre Import Export Joint Stock Company (i) 414,497,523,432 48.99 - - Thanh Thanh Cong Industrial Zone Joint Stock Company (ii) 196,789,052,877 49.00 191,055,714,436 49.00 Tay Ninh Sugar Joint Stock Company (iii) 133,366,819,053 39.23 115,952,253,112 39.23 Nuoc Trong Sugar Joint Stock Company (iv) 64,565,270,231 30.54 59,863,471,423 30.54 Tay Ninh Chemical Industry Joint Stock Company (v) 32,112,671,700 26.32 32,112,671,700 26.32

TOTAL 841,331,337,293 398,984,110,671


30

16. LONG-TERM INVESTMENTS (continued)

16.1 Investments in associates (continued)

Details of these investments in associates were as follows (continued):

(i) On 12 July 2016, the Company completed the acquisition of 20,124,764 shares equivalent to 48.99% ownership interest in Ben Tre Import and Export Joint Stock Corporation (“Betrimex”) amounting to VND 402,495,280,000. Betrimex was established in Vietnam in accordance with BRC No. 130010404 issued by the Department of Planning and Investment of Ben Tre Province on 26 May 2006, as amended. The head office of Betrimex is located at No. 75, 30/4 Street, Ward 3, Ben Tre City, Ben Tre Province, Vietnam. The principal activities of this company are producing and trading products from coconut, agricultural products; rendering processing services, tourism services; and investing in financial markets.

(ii) Thanh Thanh Cong Industrial Zone Joint Stock Company (“TTCIZ”) was established in Vietnam in accordance with BRC No. 3900471864 issued by the Department of Planning and Investment of Tay Ninh Province on 10 September 2008, as amended. The head office of TTCIZ is located at An Hoi Hamlet, An Hoa Commune, Trang Bang District, Tay Ninh Province, Vietnam. The principal activities of this company are building industrial zone’s infrastructure and leasing industrial zone.

(iii) Tay Ninh Sugar Joint Stock Company – formerly known as Tay Ninh Sugar Co., Ltd (“Tay Ninh Sugar”) was established in Vietnam in accordance with BRC No. 3900243272 issued by the Planning and Investment Department of Tay Ninh Province on 23 May 2007, as amended. The head office of Tay Ninh Sugar is located at No. 19, Vo Thi Sau Street, Ward 3, Tay Ninh City. The principal activities of Tay Ninh Sugar are planting sugarcane; producing and trading sugar and its by-products.

(iv) Nuoc Trong Sugar Joint Stock Company (“Nuoc Trong Sugar”) was established in Vietnam in accordance with Decision No. 299/QD-CT issued by the People Committee of Tay Ninh Province on 7 April 2005, as amended. The head office of Nuoc Trong Sugar is located at Hoi An Village, Tan Hoi Commune, Tan Chau District, Tay Ninh Province, Vietnam. The principal activities of this company are producing sugar; planting sugar cane, wheat, rubber trees and agricultural products; processing agriculture products, food and alcoholic beverages; processing, manufacturing and installing food industry machineries; importing and exporting businesses.

(v) Tay Ninh Chemical Industry Joint Stock Company (“Tay Ninh Chemical”) was established in Vietnam in accordance with BRC No. 45121000238 issued by the People Committee of Tay Ninh Province on 18 August 2010, as amended. The head office of Tay Ninh Chemical is located at Hoi An Village, Tan Hoi Commune, Tan Chau District, Tay Ninh Province, Vietnam. The principal activities of this company are producing starch and products related to starch; producing artificial condensed products, non-alcohol and mineral water, nitrogen compound; installing machineries and industrial equipment.


31

16. LONG-TERM INVESTMENTS (continued)

16.1 Investments in associates (continued)

Details of these investments in associates were as follows:

VND Cost of investment:

As at 30 June 2016 460,230,911,400

Increase due to new investment 402,495,280,000

As at 31 December 2016 862,726,191,400

Accumulated share in post-acquisition profit (loss) of the associates:

As at 30 June 2016 (61,246,800,729)

Share in post-acquisition profit of the associates for the period 39,851,946,622

As at 31 December 2016 (21,394,854,107)


As at 30 June 2016 398,984,110,671

As at 31 December 2016 841,331,337,293

16.2 Investments in other entities

Details of the these investments in other entities were as follows:


Cost of

investment % of

interest Cost of

investment % of

interest

(VND) (VND)

Bien Hoa Sugar Joint Stock Company - - 201,395,138,816 9.75 Phuoc Hoa Rubber Joint Stock Company - - 67,004,967,683 4.73 Can Tho Sugar Joint Stock Company - - 18,752,003,100 6.43

Other long-term investments 770,062,384 770,062,384

TOTAL 770,062,384 287,922,171,983

Provision for diminution in value of long-term investment (770,062,384) (838,395,471)

NET - 287,083,776,512


32

17. GOODWILL

VND

Cost:

As at 30 June 2016 and 31 December 2016 19,357,741,738

Accumulated amortisation:

As at 30 June 2016 1,451,830,630

Amortization for the period 967,887,087

As at 31 December 2016 2,419,717,717


As at 30 June 2016 17,905,911,108

As at 31 December 2016 16,938,024,021

18. SHORT-TERM TRADE PAYABLES

VND


Due to other parties 88,149,098,808 39,496,572,626

In which: - Toan Thinh Phat Investment

Architecture Construction Joint Stock Company 2,751,868,615 6,406,775,946

- Farmers 63,315,483,142 4,083,603,416 - Other 22,081,747,051 29,006,193,264

Due to related parties (Note 32) 105,448,139,267 6,621,405,427

TOTAL 193,597,238,075 46,117,978,053

19. SHORT-TERM ADVANCES FROM CUSTOMERS

VND


Due to other parties 3,471,020,046 69,891,457,883

In which: - Sai Gon Thuong Tin Commercial

Joint Stock Bank - 68,570,710,000 - Other 3,471,020,046 1,320,747,883

Due to related parties (Note 32) 257,195,717,325 15,153,519,660

TOTAL 260,666,737,371 85,044,977,543


33

20. STATUTORY OBLIGATIONS VND


Corporate income tax (Note 31.2) 686,671,274 7,849,822,920 Personal income tax 416,926,168 4,194,768,372 Value-added tax 35,409,373 160,828,778

Other 30,673,031 133,760

TOTAL 1,169,679,846 12,205,553,830

21. SHORT-TERM ACCRUED EXPENSES

VND


Purchase of goods 30,981,266,598 - Interest expense 20,848,697,202 22,050,638,478 Purchase of refined sugar - 8,564,877,909 Transportation and loading fees 14,265,999,870 4,593,855,727 Purchase of sugarcane 10,416,092,500 365,120,928 13th month salary 2,694,930,297 4,467,090,266

Others 8,492,000,893 18,727,779,432

TOTAL 87,698,987,360 58,769,362,740

22. OTHER SHORT-TERM PAYABLES

VND


Lending of materials - 15,648,984,731 Harvest and transportation payables 3,634,509,432 1,299,155,796

Others 8,098,388,819 7,226,047,453

TOTAL 11,732,898,251 24,174,187,980

In which: Related parties (Note 32) 1,288,984,797 18,449,779,314 Other parties 10,443,913,454 5,724,408,666


34

23. LOANS

VND


Short-term 2,449,970,904,974 2,520,380,695,895

Loans from banks (Note 23.1) 2,248,063,757,388 2,319,948,696,309 Current portion of long-term loans from banks (Note 23.2) 89,737,976,500 89,758,828,500 Current portion of long-term loan from another entity (Note 23.3) 1,720,000,000 1,720,000,000 Current portion of long-term loan from a related party (Note 23.4) 2,386,342,000 2,386,342,000 Current portion of long-term bonds (Note 23.5) 98,900,000,000 97,404,000,000 Current portion of finance leases (Note 23.6) 9,162,829,086 9,162,829,086

Long-term 1,311,489,615,507 1,359,794,918,821

Loans from banks (Note 23.2) 373,591,738,894 415,086,456,668 Loan from another entity (Note 23.3) 3,550,000,000 4,410,000,000 Loan from a related party (Note 23.4) 5,965,853,000 7,159,024,000 Bonds (Note 23.5) 889,440,000,000 889,616,000,000

Long-term finance leases (Note 23.6) 38,942,023,613 43,523,438,153

TOTAL 3,761,460,520,481 3,880,175,614,716

The Company obtained these loans at the market interest rate for the purpose of financing its working capital requirements.


35

23. LOANS (continued)

23.1 Short-term loans from banks

Details of the short-term loans from banks are as follows:

Bank 31 December 2016 Principal repayment term Description of collateral

VND

Original currency (USD)

ANZ Bank (Vietnam) Ltd - Ho Chi Minh Branch

334,492,457,850 - From 12 January 2017 to 26 June 2017

All of receivables, inventory with the carrying value of USD 18,750,000

111,500,000,000 - From 6 March 2017 to 6 May 2017

All of inventories with the carrying value of USD 6,250,000

Joint Stock Commercial Bank for Foreign Trade of Vietnam – North Sai Gon Branch

299,074,437,593 - From 8 March 2017 to 21 June 2017

Land use right of land lot 3105 located at Tan Kim Commune, Can Giuoc District, Long An

Province and deposit account at the bank

Mizuho Bank, Ltd. – Hanoi Branch

219,999,999,839 - From 3 May 2017 to 14 June 2017

Unsecured

HSBC Bank (Vietnam) Ltd 158,000,000,000 - From 27 February 2017 to 3 May 2017

All of receivables, inventories with the minimum carrying value equal to the amount

of VND 120,000,000,000

Vietnam International Commercial Joint Stock Bank - Dong Nai Branch

150,128,950,930 - From 11 January 2017 to 14 June 2017

All of receivables, inventory with the carrying value of VND 200,000,000,000

Vietnam Maritime Commercial Stock Bank – Ho Chi Minh Branch

126,431,167,378 - From 6 April 2017 to 15 June 2017

All of receivables with the carrying value of VND 100,000,000,000

Malayan Banking Berhad - Hanoi Branch

112,049,555,637 - From 15 March 2017 to 28 June 2017


39,935,000,000 1,750,000 From 9 January 2017

to 30 June 2017 All of receivables, inventory with the carrying

value of USD 5,000,000


36


23.1 Short-term loans from banks (continued)

Details of the short-term loans from banks are as follows: (continued)


VND


Military Commercial Joint Stock Bank - South Sai Gon, Ho Chi Minh Branch

99,999,995,346 - From 28 February 2017 to 8 June 2017

All of inventory with the carrying value of VND 143,750,000,000

Joint Stock Commercial Bank for Investment and Development of Vietnam - Gia Dinh Branch

94,405,440,000 - From 30 March 2017 to 27 April 2017

Unsecured

Vietnam Technological and Commercial Joint Stock Bank - Ho Chi Minh Branch

80,756,524,000 3,540,400 28 February 2017 All of receivables and inventories with the carrying value of VND 150,000,000,000

Vietnam Bank for Agriculture and Rural Development – Gia Lai Branch

79,971,631,500 - From 15 May 2017 to 20 July 2017

Unsecured

Joint Stock Commercial Bank for Foreign Trade of Vietnam - Gia Lai Branch

75,000,000,000 - 28 February 2017 Guarantee from Gia Lai Electricity Joint Stock Company


37


23.1 Short-term loans from banks (continued)

Details of the short-term loans from banks are as follows: (continued)


VND


BPCE IOM –

Ho Chi Minh Branch

63,854,766,291 - From 16 February 2017 to 28 March 2017


29,410,894,660 1,289,386 29 May 2017


Shinhan Vietnam Bank Ltd - Ho Chi Minh Branch

58,535,000,000 - From 25 January 2017 to 6 April 2017

Unsecured

Ho Chi Minh City Development Joint Stock Commercial Bank - Ho Chi Minh Branch

49,846,832,519

-

From 27 March 2017 to 26 June 2017

Unsecured

Malayan Banking Berhad - Ho Chi Minh Branch

42,065,913,950 - From 8 February 2017 to 10 March 2017

All of receivables, inventories with the carrying value of USD 5,000,000

Joint Stock Commercial Bank for Investment and Development of Vietnam – Gia Lai Branch

15,834,125,336 - From 27 April 2017 to 19 June 2017

All finished goods for commercial contracts with the carrying value of VND 126,000,000,000

Vietnam Joint Stock Commercial Bank for Industry and Trade – Gia Lai Branch

6,771,064,559

-

From 7 March 2017 to 20 April 2017

Trade receivables, land use right, assets funded from the loans, rights

emerged from trading electricity contract with Central Power Corporation

TOTAL 2,248,063,757,388 6,579,786


38


23.2 Long-term loans from banks Details of the long-term loans from banks are as follows:

Bank Ending balance Principal repayment term Description of collateral

VND

Vietnam Joint Stock Commercial Bank for Industry and Trade – Gia Lai Branch

213,880,647,943 From 1 January 2017 to 9 October 2022

Trade receivables, land use right, assets funded from the loans, rights emerged from

trading electricity contract with Central Power Corporation

141,462,400,000 From 1 January 2017

to 1 October 2021 Machinery and equipment funded

from the loan

15,277,243,078 From 18 February 2017 to 13 February 2022

Trade receivables, land use right, assets funded from the loans, rights emerged from

trading electricity contract with Central Power Corporation

2,454,320,000 From 29 January 2017 to 29 October 2022

Machinery and equipment funded from the loan

Asia Commercial Joint Stock Bank – Tan Thuan, Ho Chi Minh Branch

73,886,048,750 From 15 February 2017 to 15 May 2022

Land use right of land lot 37 located at Ward 2, Tay Ninh Commune, associated assets funded

from the loan and 100% of receivables from Espace Bourbon Tay Ninh project


39


23.2 Long-term loans from banks (continued) Details of the long-term loans from banks are as follows: (continued)


VND

Vietnam Joint Stock Commercial Bank for Industry and Trade - Tay Ninh Branch

8,719,000,000 From 2 February 2017 to 20 April 2019

Land use right of land lot 513 located at Thanh Tay Commune, Tan Bien District, Tay Ninh

Province and machinery funded from the loan

Vietnam Bank for Agriculture and Rural Development - Gia Lai Branch

7,650,055,623

From 20 June 2017 to 20 April 2021

Machinery and equipment funded from the loan

TOTAL 463,329,715,394

In which: Current portion 89,737,976,500 Non-current portion 373,591,738,894

23.3 Long-term loan from another entity

Details of the long-term loan from another entity is as follows: Lender 31 December 2016 Principal repayment term Description of collateral

VND

Vietnam Environment Protection Fund 5,270,000,000 From 25 March 2017

to 25 March 2020 Bank guarantee from Vietnam

Joint Stock Commercial Bank for Industry and Trade – Gia Lai Branch

In which:

Current portion 1,720,000,000 Non-current portion 3,550,000,000


40


23.4 Long-term loan from a related party

Details of the long-term loan from a related party is as follows: Lender 31 December 2016 Principal repayment term Description of collateral

VND

Tay Ninh Sugar Joint Stock Company 8,352,195,000 From 10 October 2017

to 10 April 2020 Unsecured

In which:

Current portion 2,386,342,000 Non-current portion 5,965,853,000


41


23.5 Bonds issued

Details of bonds are as follows:

31 December 2016 Principal repayment term Purpose Description of collateral

VND

Issued at par value

Tien Phong Commercial Joint Stock Bank – Contract No. 01.2016/PL/TPBANK-SBT dated 30 May 2016

593,004,000,000 From 30 May 2017 to 30 May 2021

Loan restructuring and financing for

working capital

Land use right of land lot 97 located at Tan Hung Commune, Tan Chau District,

Tay Ninh Province and associated assets owned by the Company,

machinery and equipment and 51% capital contribution by the Company in

Thanh Thanh Cong Gia Lai Co., Ltd.

Vietnam International Commercial Joint Stock Bank – Contract No. 06 – TP/2016/VIB – TTCS dated 30 May 2016

395,336,000,000

From 30 May 2017 to 30 May 2021

Loan restructuring and financing for

working capital

988,340,000,000

In which: Current portion 98,900,000,000 Non-current portion 889,440,000,000

These bonds bear an interest rate of 8.5% for the first year and the average of interest rate of individual saving deposit in VND with the term of twelve (12) months announced by four (4) commercial banks including Tien Phong Commercial Joint Stock Bank, Vietnam International Commercial Joint Stock Bank, Joint Stock Bank for Foreign Trade of Vietnam and Vietnam Joint Stock Commercial Bank for Industry and Trade plus margin 2.6% per annum for subsequent periods.


42


23.6 Finance leases The Group currently has leased machinery and equipment under finance lease agreements with Asia Commercial Bank Leasing Company Limited. Future obligations due under finance lease agreements as at 31 December 2016 were as follows:

VND


Total minimum

lease payments Finance charges Lease liabilities Total minimum

lease payments Finance charges Lease liabilities

Current liabilities

Less than 1 year 13,588,475,534 4,425,646,448 9,162,829,086 13,588,475,534 4,425,646,448 9,162,829,086

Non-current liabilities From 1 - 5 years 44,405,360,432 7,754,044,119 36,651,316,313 45,997,402,004 9,346,085,666 36,651,316,338

Over 5 years 2,341,102,861 50,395,561 2,290,707,300 7,134,980,474 262,858,659 6,872,121,815

TOTAL 60,334,938,827 12,230,086,128 48,104,852,699 66,720,858,012 14,034,590,773 52,686,267,239


43

24. OWNERS’ EQUITY

24.1 Increase and decrease in owners’ equity

VND

Issued share

capital Share

premium Treasury shares Foreign exchange difference reserve

Investment and development

fund

Other fund belonging to

owners’ equity Undistributed

earnings Total

For the six-month period ended 31 December 2015

As at 30 June 2015 1,485,000,000,000 14,732,000,010 (61,577,199,043) - 227,425,653,785 (2,040,858,039) 257,408,414,403 1,920,948,011,116 Increase in capital 371,423,580,000 137,426,724,600 - - - - - 508,850,304,600 Reissuance of treasury shares - 3,015,679,213 21,270,336,750 - - - - 24,286,015,963 Net profit for the period - - - - - - 169,208,623,602 169,208,623,602 Profit appropriation - - - - 16,283,606,416 - (16,283,606,416) - Transfer to bonus and welfare fund - - - - - - (19,940,258,786) (19,940,258,786) Dividends declared - - - - - - (127,661,462,600) (127,661,462,600)

Other increase - - - - - 2,040,858,039 - 2,040,858,039

As at 31 December 2015 1,856,423,580,000 155,174,403,823 (40,306,862,293) - 243,709,260,201 - 262,731,710,203 2,477,732,091,934


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the six-month period ended 31 December 2016

44

24. OWNERS’ EQUITY (continued)

24.1 Increase and decrease in owners’ equity (continued)

VND

Issued share

capital Share

premium Treasury shares Foreign exchange difference reserve

Investment and development fund

Other fund belonging to

owners’ equity Undistributed

earnings Total


As at 30 June 2016 1,947,610,330,000 155,174,403,823 (40,306,862,293) (2,165,210,735) 243,709,260,201 - 386,137,417,421 2,690,159,338,417 Increase in capital (*) 584,272,350,000 (146,070,770,000) - - (233,713,240,000) - (204,488,340,000) - Reissuance of treasury shares - 66,790,560,242 40,306,862,293 - - - - 107,097,422,535 Net profit for the period - - - - - - 174,471,747,289 174,471,747,289 Foreign exchange differences arisen from conversion from USD to VND for the period - - - 5,574,151,556 - - - 5,574,151,556 Profit appropriation - - - - 29,221,439,973 - (29,221,439,973) - Transfer to bonus and welfare fund - - - - - - (41,402,005,807) (41,402,005,807)

As at 31 December 2016 2,531,882,680,000 75,894,194,065 - 3,408,940,821 39,217,460,174 - 285,497,378,930 2,935,900,653,990



45


24.1 Increase and decrease in owners’ equity (continued)

(*) On 24 October 2016, the Company completed the issuance of 58,427,235 new shares to its existing shareholders under forms of bonus shares appropriated from share premium, investment and development fund and undistributed earnings; and stock dividends appropriated from undistributed earnings in accordance with the Shareholders’ Resolution dated 3 August 2016. This increase was approved by the Planning and Investment Department of Tay Ninh Province through the issuance of the forth amended BRC dated 4 November 2016.

24.2 Capital transactions with owners and distribution of dividends

VND


31 December 2016


31 December 2015

Issued contributed share capital

As at 31 December 2015 1,947,610,330,000 1,485,000,000,000

Increase during the period 584,272,350,000 371,423,580,000

As at 31 December 2016 2,531,882,680,000 1,856,423,580,000

Dividends declared - 127,661,462,600 Dividends paid (60,150,650) (2,756,991,570)

24.3 Shares

Number of shares


(shares) (shares)

Authorised shares 253,188,268 194,761,033

Shares issued and fully paid Ordinary shares 253,188,268 194,761,033

Treasury shares Ordinary shares - (3,268,840)

Shares in circulation Ordinary shares 253,188,268 191,492,193



46


24.4 Earnings per share



(restated)

Net profit for the period attributable to the Company’s shareholders (VND) 174,471,747,289 169,208,623,602

Appropriation to bonus and welfare fund (*) (20,936,609,675) (20,305,034,832)

Net profit attributable to ordinary holders of the Company’s shareholders adjusted for appropriation to bonus and welfare fund 153,535,137,614 148,903,588,770 Weighted average number of ordinary shares in circulation (shares) (**) 252,613,899 229,714,918

Basic and diluted earnings per share (VND/share) 608 648 (*) Net profit used to compute earnings per share for the six-month period ended 31

December 2015 was restated following the actual distribution to Bonus and welfare funds from 2015 retained earnings as approved in the Resolution of Annual Shareholders Meeting No. 02/2015/NQ-DHDCD dated 18 December 2015.

Bonus and welfare fund for the six-month period ended 31 December 2016 is intended to be accrued in accordance with the Resolution of Annual Shareholders Meeting No. 02/2016/NQ-DHDCD dated 31 October 2016.

(*) The weighted average number of ordinary shares for the six-month period ended 31 December 2015 was adjusted to reflect the additional issuance of 58,427,235 bonus shares and dividends shares appropriated from share premium and undistributed earnings in accordance to VAS No. 30.

There have been no dilutive potential ordinary shares during the period and up to the date of these interim consolidated financial statements.

25. NON-CONTROLLING INTERESTS

VND As at 30 June 2016 12,236,403,239

Net loss for the period (545,701,549)

As at 31 December 2016 11,690,701,690



47

26. REVENUES

26.1 Revenues from sale of goods and rendering of services

VND


31 December 2016


31 December 2015

Gross revenue 2,097,398,777,940 1,775,800,122,332

Of which: Sales of sugar 1,918,797,041,282 1,706,389,194,077 Sales of molasses 31,909,565,714 27,618,485,991 Sales of electricity 13,052,394,457 19,879,383,106 Sales of fertilizer 12,128,858,973 8,976,560,977 Other 121,510,917,514 12,936,498,181

Less (773,971,495) (9,334,395,691) Sale returns (19,032,575) (8,513,593,419)

Sale allowances (754,938,920) (820,802,272)

Net revenues 2,096,624,806,445 1,766,465,726,641

Of which: Sales of sugar 1,918,024,315,404 1,697,074,089,296 Sales of molasses 31,909,565,714 27,618,485,991 Sales of electricity 13,052,394,457 19,879,383,106 Sales of fertilizer 12,128,858,973 8,976,560,977 Other 121,509,671,897 12,917,207,271

Of which: Sales to other parties 1,416,436,864,211 1,593,966,844,333 Sales to related parties 680,187,942,234 172,498,882,308

26.2 Finance income

VND


31 December 2016


31 December 2015

Interest income 64,576,196,812 38,246,335,526 Gains from disposal of investments 26,574,211,628 - Dividends income 2,698,727,000 2,581,244,353 Foreign exchange gains 3,994,677,252 959,305,602 Income from change in ownership interest of investment - 49,904,071,698

Others - 501,719,766

TOTAL 97,843,812,692 92,192,676,945



48

27. COST OF GOODS SOLD AND SERVICES RENDERED

VND


31 December 2016


31 December 2015

Cost of sugar 1,644,666,316,823 1,419,345,283,855 Cost of molasses 29,825,218,000 26,385,927,109 Cost of electricity 16,469,335,735 18,922,617,711 Cost of fertilizer 11,962,751,109 8,628,596,620

Others 104,475,384,195 5,612,157,208

TOTAL 1,807,399,005,862 1,478,894,582,503

28. FINANCE EXPENSES

VND


31 December 2016


31 December 2015

Interest expense 118,770,981,286 47,664,196,204 Foreign exchange losses 1,108,683,686 30,273,667,067 Provision 9,784,202,172 6,991,058,388

Others 9,168,959,931 7,531,997,637

TOTAL 138,832,827,075 92,460,919,296

29. SELLING EXPENSES AND GENERAL AND ADMINISTRATIVE EXPENSES

VND


31 December 2016


31 December 2015

Selling expenses Expenses for external services 20,660,852,190 33,919,269,482 Labour cost 4,083,929,694 4,472,428,736 Depreciation and amortisation 1,794,139,876 867,965,561

Others 3,122,885,463 5,928,836,977

TOTAL 29,661,807,223 45,188,500,756

General and administrative expenses

Labour costs 33,454,740,685 24,400,676,986 (Reversal of provision) provision (6,552,034,458) 18,524,980,054 Expenses for external services 12,737,364,048 9,775,406,044 Depreciation and amortisation 5,448,487,517 3,048,407,621

Other expenses 22,582,325,048 14,905,031,023

TOTAL 67,670,882,840 70,654,501,728



49

30. PRODUCTION AND OPERATING COSTS

VND


31 December 2016


31 December 2015

Raw materials and merchandise goods 1,676,872,405,616 1,329,397,221,929 Expenses for external services 65,345,815,536 53,916,986,053 Labour costs 68,220,885,296 50,264,164,602 Depreciation and amortisation 73,856,857,768 70,002,886,318

Other expenses 20,435,731,709 44,444,024,790

TOTAL 1,904,731,695,925 1,548,025,283,692

31. CORPORATE INCOME TAX

The statutory corporate income tax ("CIT") rate applicable to the Company is 10% of taxable profits. The Company is entitled to an exemption from CIT in regards to taxable profits generated from manufacturing sugar from sugar-cane commencing from 1 January 2015 in accordance with Circular No. 96/2015/TT-BTC issued by the Ministry of Finance dated 22 June 2015. The Company’s subsidiaries have the obligations to pay CIT at the rates ranging from 10% to the normal applicable rate of their respective taxable profits their respective taxable profits. They are also entitled to CIT exemption and reduction in accordance with their respective business registration certificates and applicable tax regulations The tax returns filed by Group are subject to examination by the tax authorities. As the application of tax laws and regulations is susceptible to varying interpretations, the amounts reported in the interim consolidated financial statements could change at a later date upon final determination by the tax authorities.

31.1 CIT expense

VND


31 December 2016


31 December 2015

Current CIT expense 18,536,180,775 13,546,429,857 Adjustment for under (over) accrual of tax from prior periods 137,833,522 (689,805,570)

Deferred tax expenses 816,767,371 -

TOTAL 19,490,781,668 12,856,624,287

31.2 Current CIT The current tax payable is based on taxable profit for the current period. The taxable profit of the Group for the period differs from the profit as reported in the interim consolidated income statement because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are not taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted by the interim balance sheet date.



50

31. CORPORATE INCOME TAX (continued)

31.2 Current CIT (continued)

A reconciliation between the accounting profit before tax in the interim consolidated income statement and estimated taxable profit is presented below:

VND


31 December 2016


31 December 2015

Accounting profit before tax 193,416,827,408 182,396,495,246

Adjustments: Change of provisions for long-term investments (689,334,670) 75,162,980 Share of profit in associates (39,851,946,622) (7,966,396,311) Gains from change in ownership interest of investments - (49,904,071,698) Gains from disposal of investments 27,985,076,677 - Unrealized profits (8,167,673,714) 100,000,000 Non-deductible expenses 1,334,641,618 393,148,486 Amortization of goodwill 967,887,087 466,133,999

Dividends income (2,698,727,000) (2,199,498,353)

Estimated current taxable profit 172,296,750,784 123,360,974,349

In which: Sugar produced from sugar cane activity 72,265,916,972 63,969,408,710

Others 100,030,833,812 59,391,565,639

Estimated current CIT expense 18,536,180,775 13,546,429,857 Under (over) accrual of CIT from previous years 137,833,522 (689,805,570)

Current CIT expense 18,674,014,297 12,856,624,287 CIT payable (overpaid) at beginning of period 7,774,691,242 (1,309,210,990)

CIT paid during the period (25,762,034,265) (4,788,013,823)

CIT payable at end of period 686,671,274 6,759,399,474

In which: CIT payables 686,671,274 10,643,366,874

CIT overpaid - (3,883,967,400)



51

31. CORPORATE INCOME TAX (continued)

31.3 Deferred tax

The following is the deferred tax asset recognized by the Group, and the movement thereon, during the current and previous period:

VND

Interim consolidated balance sheet

Interim consolidated income statement

31 December 2016

30 June 2016

For the six-month

period ended 31 December 2016

For the six-month

period ended 31 December 2015

Unrealized profit 34,627,948 851,395,319 (816,767,371) -

Deferred tax asset 34,627,948 851,395,319

Deferred tax expense (816,767,371) -


52

32. TRANSACTIONS WITH RELATED PARTIES

Significant transactions with related parties during the six-month period ended 31 December 2016 and 31 December 2015 were as follows:

VND

Related parties Relationship Transactions


31 December 2016


31 December 2015

Thanh Thanh Cong Investment Joint Stock Company

Related party Lending 163,800,000,000 - Sale of goods 90,964,791,204 120,843,120,952

Purchase of service 6,521,695,296 5,764,428,267 Interest income 4,990,708,994 685,918,761 Purchase of goods 1,333,110,508 321,711,682 Service rendered 7,007,273 - Thanh Thanh Cong Trading Joint Stock Company Related party Lending 471,000,000,000 - Sale of goods 34,835,195,967 175,119,047 Interest income 19,646,829,593 6,392,735,855 Purchase of service 3,118,992,902 3,316,895,853 Service rendered 98,181,819 87,272,727 Purchase of goods - 61,532,857,143 Thuan Thien Trading Investment Joint Stock Company

Related party Purchase of goods 7,039,668,250 - Interest income 6,402,101,344 259,458,988

Sale of goods - 10,014,380,952 Purchase of materials - 4,813,356,772 Nuoc Trong Sugar Joint Stock Company Associate Purchase of goods 93,892,442,847 - Purchase of materials 8,017,721,688 - Sale of goods 1,004,377,104 1,208,269,000 Interest income 648,487,510 - Service rendered 150,000,000 - Dividend - 381,746,000 Global Mind Commodities Trading Pte. Ltd Related party Purchase of materials 747,742,994,133 313,567,573,888 Sale of goods 433,173,248,730 39,387,692,630


53

32. TRANSACTIONS WITH RELATED PATIES (continued)

Significant transactions with related parties during the six-month period ended 31 December 2016 and 31 December 2015 were as follows: (continued)

VND



31 December 2016


31 December 2015

Tay Ninh Sugar Joint Stock Company Associate Purchase of goods 12,522,301,277 - Lending 3,000,000,000 - Interest income 475,777,775 - Interest expenses 246,702,087 - Service rendered 39,000,000 - Bien Hoa Sugar Joint Stock Company Related party Sale of goods 86,486,358,043 34,980,333 Purchase of goods 66,431,851,317 3,283,829,796 Purchase of assets 4,164,194,701 - Sale of fixed assets 1,819,397,390 480,000,000 Purchase of service 214,361,467 42,861,847 Service rendered 138,639,406 - Dividend - 10,465,910,000 Svayrieng Sugar and Cane Company Limited Related party Purchase of goods 21,456,814,000 -

Purchase of materials 2,104,326,544 - Sale of goods 1,099,360,000 - Interest income 45,424,928 - Ben Tre Import Export Joint Stock Company Associate Purchase of goods 34,403,247,584 - Interest income 1,219,501,112 - Sale of goods 760,049,500 - Dang Huynh Industrial Zones Exploitation and Management Joint Stock Company

Related party Purchase of service 443,376,400 2,010,338,018 Land rental prepayment - 67,491,898,320

Sale of goods - 10,046,666


54

32. TRANSACTIONS WITH RELATED PARTIES (continued)

Significant transactions with related parties during the six-month period ended 31 December 2016 and 31 December 2015 were as follows: (continued)

VND



31 December 2016


31 December 2015

Bien Hoa - Ninh Hoa Sugar One Member Company Limited

Related party Purchases of goods 103,244,619,050 - Purchases of material 443,929,500 -

Son Tin Commodity Exchange Joint Stock Company Related party Lending 109,000,000,000 - Purchase of goods 24,434,047,619 - Sale of goods 21,085,714,287 - Interest income 13,922,009,449 - Phan Rang Sugar Joint Stock Company Related party Purchase of goods 5,989,817,373 - Hoang Anh Gia Lai Sugarcane Co., Ltd

Related party Sale of assets 36,264,634,115 - Lending 3,000,000,000 -

Interest income 54,000,000 - Hai Vi Company Limited Related party Payment on behalf 13,552,403,697 -

Service rendered 1,518,900,648 -

Transactions with other related parties

Remuneration to members of the Board of Directors and Management

VND


31 December 2016


31 December 2015

Salaries and bonus 2,543,430,000 2,479,556,438


55


Amounts due from and due to related parties at the interim balance sheet date were as follows:

VND

Related parties Relationship Transactions 31 December 2016 30 June 2016

Short-term trade receivables

Global Mind Commodities Trading Pte. Ltd Related party Sale of goods 356,432,973,771 50,498,783,775

Hoang Anh Gia Lai Sugarcane Co., Ltd Related party Sale of assets 36,264,634,115 -

Thanh Thanh Cong Trading Joint Stock Company Related party Sale of goods 32,656,409,162 5,764,013,889 Service rendered 165,000,000 -

Son Tin Commodity Exchange Joint Stock Company Related party Sale of goods 22,140,000,000 170,234,000,000

Hai Vi Company Limited Related party Service rendered 1,670,790,714 -

Nuoc Trong Sugar Joint Stock Company Associate Sale of materials 1,024,535,384 -

Tay Ninh Sugar Joint Stock Company Associate Service rendered 462,900,000 323,333,334

Ben Tre Import Export Joint Stock Company Associate Sale of goods 45,622,500 70,643,555,625

Bien Hoa Sugar Joint Stock Company Related party Sale of goods 22,075,750 16,055,201,714 Service rendered 12,000,000 24,000,000

Bien Hoa - Ninh Hoa Sugar One Member Company Limited Related party Sale of goods - 112,847,096,621

Thanh Thanh Cong Investment Joint Stock Company Related party Sale of goods - 73,238,930,627

TOTAL 450,896,941,396 499,628,915,585


56


Amounts due from and due to related parties at the interim balance sheet date were as follows: (continued)

VND


Short-term advance to suppliers

Global Mind Commodities Trading Pte. Ltd Related party Purchase of materials 516,082,752,361 274,868,447,816

Son Tin Commodity Exchange Joint Stock Company Related party Purchase of goods 226,668,250,000 -

Thuan Thien Trading Investment Joint Stock Company Related party Purchase of materials 148,835,847,540 107,533,442,140

Thanh Thanh Cong Trading Joint Stock Company Related party Purchase of materials 100,000,400,000 14,011,549,910

Svayrieng Sugar and Cane Company Limited Related party Purchase of materials 49,855,063,056 36,487,077,117

Bien Hoa Sugar Joint Stock Company Related party Purchase of materials 1,121,650,500 -

Tay Ninh Sugar Joint Stock Corporation Associate Purchase of goods 385,000,000 -

Nuoc Trong Sugar Joint Stock Company Associate Purchase of goods - 15,000,000,000

TOTAL 1,042,948,963,457 447,900,516,983

Short-term loan receivables (*)

Son Tin Commodity Exchange Joint Stock Company Related party Lending 109,000,000,000 -

Thanh Thanh Cong Investment Joint Stock Company Related party Lending 164,800,000,000 1,000,000,000

Thanh Thanh Cong Trading Joint Stock Company Related party Lending 71,000,000,000 100,000,000,000

Tay Ninh Sugar Joint Stock Company Associate Lending 13,500,000,000 14,500,000,000

Thuan Thien Trading Investment Joint Stock Company Related party Lending 18,000,000,000 18,000,000,000

Hoang Anh Gia Lai Sugarcane Co., Ltd Related party Lending 3,000,000,000 -

TOTAL 379,300,000,000 133,500,000,000

(*) This represents the short-term loan receivables with the term of six months to one year and earns interest at the rate of 8% to 10% per annum.


57



VND


Other short-term receivables

Hai Vi Company Limited Related party Payment on behalf 12,957,386,990 -

Bien Hoa Sugar Joint Stock Company Related party Lending of materials 7,519,315,019 -

Son Tin Commodity Exchange Joint Stock Company Related party Interest income 2,759,749,275 4,483,602,557

Thanh Thanh Cong Trading Joint Stock Company Related party Interest income 5,796,198,985 1,978,780,938

Ben Tre Import Export Joint Stock Company Associate Interest income - 800,877,048

Thanh Thanh Cong Investment Joint Stock Company Related party Interest income 1,231,531,365 713,263,264

Thuan Thien Trading Investment Joint Stock Company Related party Interest income 4,378,846,489 710,136,810

Tay Ninh Sugar Joint Stock Company Associate Interest income 93,000,000 193,333,332

Nuoc Trong Sugar Joint Stock Company Associate Interest income 159,316 23,333,333

Svayrieng Sugar and Cane Company Limited Related party Interest income - 2,894,599,398

TOTAL 34,736,187,439 11,797,926,680

Other long-term receivable

Svayrieng Sugar and Cane Company Limited Related party Business Co-operation Contract 12,707,425,000 12,707,425,000

Loan

Tay Ninh Sugar Joint Stock Company Associate Loan 8,352,195,000 9,545,366,000


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Amounts due from and due to related parties at the interim balance sheet date were as follows: (continued) VND


Short-term trade payables

Bien Hoa Sugar Joint Stock Company Related party Purchase of materials 60,884,716,100 -

Nuoc Trong Sugar Joint Stock Company Associate Purchase of materials 38,018,161,689 -

Svayrieng Sugar and Cane Company Limited Related party Purchase of goods 2,104,326,544 -

Thanh Thanh Cong Investment Joint Stock Company Related party Purchase of service 3,285,339,149 3,413,845,227 Purchase of goods 382,888,000 -


Related party Purchase of goods 499,500,000 -

Thuan Thien Trading Investment Joint Stock Company Related party Purchase of materials 255,928,160 3,207,560,200

Thanh Thanh Cong Trading Joint Stock Company Related party Purchase of services 17,279,625 -

TOTAL 105,448,139,267 6,621,405,427

Short-term advance from customers

Thanh Thanh Cong Investment Joint Stock Company Related party Sale of goods 165,493,160,000 -

Thanh Thanh Cong Trading Joint Stock Company Related party Sale of goods 89,200,287,707 1,588,600,160

Bien Hoa Sugar Joint Stock Company Related party Sale of goods 1,280,449,618 11,906,304,482


Related party Service rendered 1,214,000,000 1,214,000,000

Tay Ninh Sugar Joint Stock Company Associate Service rendered 7,820,000 -

Nuoc Trong Sugar Joint Stock Company Associate Sale of goods - 371,692,100

Thuan Thien Trading Investment Joint Stock Company Related party Sale of goods - 72,922,918

TOTAL 257,195,717,325 15,153,519,660


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VND


Other short-term payables

Bien Hoa Sugar Joint Stock Company Related party Lending of materials - 15,648,984,731

Tay Ninh Sugar Joint Stock Company Associate Business Co-operation Contract 1,200,000,000 1,200,000,000 Interest expense 88,984,797 100,449,068

Ben Tre Import Export Joint Stock Company Associate Interest expense - 1,500,345,515

TOTAL 1,288,984,797 18,449,779,314

Short-term accrued expense

Bien Hoa Sugar Joint Stock Company Related party Purchase of goods 4,164,194,701 -


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33. COMMITMENTS

Capital expenditure commitments At 31 December 2016, the Group has a commitment of VND 22,051,360,631 (30 June 2016: VND 42,473,797,613) principally related to construction of Project Espace Bourbon Tay Ninh.

34. EVENTS AFTER THE INTERIM BALANCE SHEET DATE

There is no matter or circumstance that has arisen since the interim balance sheet date that requires adjustment or disclosure in the interim consolidated financial statements of the Group. Nguyen Ngoc Han Le Phat Tin Tran Que Trang Preparer Chief Accountant Deputy General Director 14 February 2017

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